People's Bank of China, China Securities Regulatory Commission and State Administration of Foreign Exchange allow eligible foreign investors to conduct bond repo in China’s bond market

The People's Bank of China, the China Securities Regulatory Commission and the State Administration of Foreign Exchange issued a joint announcement supporting overseas institutional investors that are allowed to conduct spot bond trading in China’s bond market to carry out bond repurchase (repo) transactions. The move is positioned as a response to rising foreign participation and demand for repo-based liquidity management. As of end-August 2025, 1,170 overseas institutions from 80 countries and regions had entered China’s bond market, with total bond holdings of about CNY 4 trillion. The announcement also situates the change within a phased opening of the interbank bond market repo segment, including access granted from 2015 for certain categories of overseas institutions and a 2025 offshore repo arrangement launched with the Hong Kong Monetary Authority using Bond Connect northbound bonds as collateral. Operationally, the authorities highlighted efforts to align interbank market repo arrangements with common international practices, including enabling transfer of the underlying bonds and their reuse, to facilitate foreign participation and support improvements to domestic repo mechanisms. The three agencies indicated they will continue refining supporting mechanisms with relevant parties as part of the broader push for further institutional opening of China’s bond market while balancing openness and financial security.